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Maersk Oil confirms plan to shut Tyra field in 2018

Maersk Oil confirms plan to shut Tyra field in 2018

Dec 30 Maersk Oil, a subsidiary of Danish shipping and oil company A.P. Moller-Maersk, confirmed in a statement on Friday that it planned to stop production at its Tyra gas field in October 2018 as it would no longer be economically viable.

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Maersk says an economically viable solution for the full recovery of the remaining resources in the field in the Danish part of the North Sea has not yet been identified.

Says production from the Tyra field is consequently expected to cease on Oct. 1, 2018.

The company warned in April that Tyra, Denmark's largest gas field, would have to be shut down if no viable solution had been found by the end of 2016.

The Tyra facilities are nearing the end of their operational life, due to a combination of more than 30 years production and subsidence of the underground chalk reservoir.

Maersk says it will have to reallocate resources being used to plan the rebuilding of Tyra to come up with a detailed plan to discontinue operations at the field.

Says dialogue with Danish authorities will continue in an effort to identify terms that would allow future investment in the field.

"The discussions between the government and Maersk are still ongoing, and we hope to reach a final settlement in the beginning of next year," Minister of Energy and Climate Lars Christian Lilleholt said in a statement. Further company coverage: (Copenhagen newsroom; editing by David Clarke)

Source: Reuters

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